Accounting 242 ProjectGroup 2: Siqi Li

Connor Caruso

Ryan Maack

Lindsey Koppy

Michael Fischer

Identity Sign Group Materials/Labor tracking

Microsoft Excel Time cards

Profitability Done by operating income Occasional losses due to misquotes, etc.

Budgets Done by “running tally”

Identity Sign Group Investment Decisions

Real Estate New/updated equipment

Performance Rewards New leads Christmas bonus Company Culture

Identity Sign Group-- Suggestions Implement a set budget

Allows for financial forecasting Establishes constraints No real drawbacks

Take more care with mixing Personal and Corporate finances Working so far, but could be an issue in the future Blurred line

Cambridge Publishing PICTURE

Cambridge Publishing Revenue & Expenses Most of the revenue is selling text books to

professors/educators/schools Marketing technological based learning interface

E-books

Online Homework Used books, rental stores, online sources affect sales Royalties

TOTAL REVENUE15

0 9,000.00 9,40

0 776,000.

00 12,90

0 1,259,800.

00 16,72

5 2,017,200.

00

Accuracy Check 6,000.00 15,400.0

0 13,600.00 28,000.00

Design and Photos 1,500.00 17,000.0

0 6,600.00 6,900.00

Composition11,000.0

0 16,100.0

0 19,000.00 41,000.00

Editing 9,800.00 11,000.0

0 12,400.00 14,400.00

Printing 9,500.00 178,000.

00 192,100.0

0 250,000.0

0Other 1,000.00 4,000.00 2,600.00 6,000.00

CGS38,800.0

0 431.1% 241,500.

00 31.1% 246,300.0

0 19.6% 346,300.0

0 17.2%

GROSS PROFIT

-29,800.0

0 -331.1% 534,500.

00 68.9% 1,013,500.

00 80.4% 1,670,900.

00 82.8%Other Expenses: Complimentary Books 1,200.00 6,000.00 8,200.00 29,800.00

Reviewers/Focus Groups 6,000.00 30,000.0

0 17,600.00 17,100.00Marketing 1,000.00 7,700.00 12,200.00 11,000.00

Homework System 0.00 12,000.0

0 14,700.00 13,300.00Website Development 0.00 1,200.00 2,600.00 4,100.00

Royalty Expense 1,300.00 198,000.

00 311,100.0

0 525,000.0

0

TOTAL OTHER EXPENSES 9,500.00 105.6% 254,900.

00 32.8% 366,400.0

0 29.1% 600,300.0

0 29.8%

PROFIT

-39,300.0

0 -436.7% 279,600.

00 36.0% 647,100.0

0 51.4% 1,070,600.

00 53.1%

Edition 1 Edition 2 Edition 3 Edition 4Qty Amount % of Sales Qty Amount % of Sales Qty Amount % of Sales Qty Amount % of Sales

Cambridge Publishing

Ext. Rep # of Calls YTD calls Hours Calls/Hour YTD hours YTD Calls/Hour

1103 Rep 1 121 957 30 4.0 240 4.0

1105 Rep 2 10 250 2.5 4.0 61.75 4.0

1106 Rep 3 71 528 22 3.2 174.75 3.0

1109 Rep 4 68 705 19 3.6 169.25 4.2

1111 Rep 5 69 372 15 4.6 141.5 2.6

1112 Rep 6 103 1278 23 4.5 267.5 4.8

1114 Rep 7 68 820 20.5 3.3 196.5 4.2

TOTALS 510 4910 132.0 3.9 1251.25 3.9

Direct LaborEmployee Rewards Programs

Cambridge Publishing Investment Decisions

Recently purchased a new building Outsourcing

Budgets No set budget system in place

2012

Annual Offi ce Rent 51,692$ Annual Storage Expense 14,979

Total Annual Rent 66,671.00$

Interest 4.70%

Max Loan 1,418,531.91$

Max Loan 1,418,531.91$

Expected cost to build out 470,000.00$

Max willing to pay for building 948,531.91$

Cambridge Publishing Suggestions Implement an effective budgeting

system Plan for growth No real drawbacks

Move from a call center model to a Sales Meeting model Targets resources to use more effectively Significantly higher overhead involved

Comparison Cambridge

Publishing Special Orders Performance

Evaluation Capital Investment Lack of Budget Outsourcing

Identity Sign Group

Custom Orders Performance

Evaluation Capital Investment Lack of Budget Self Manufacturing

Questions If Identity Sign Group part of larger corporation

and needed to be evaluated, would ROI or RI be more useful in general? Why? What are the benefits and drawbacks of each method?

How might the advent of E-Books affect Cambridge Publishing with regards to material, labor, and overhead?